El Salvador Modifies Bitcoin Law to In Favor of IMF Loan Deal

El Salvador has finally bent its Bitcoin rules to accommodate demands from the International Monetary Fund (IMF)

On Wednesday, the Salvadoran Congress approved a bill that amended its Bitcoin (BTC) law. According to Reuters, the bill sent by President Nayib Bukele complies with a deal the country had with international lenders. Legislators from Bukele’s New Ideas Party, with a majority in Congress, made the approval seemless. 

El-Salvador Congress Obliges IMF Over Bitcoin 

The country agreed to a Bitcoin reform deal with the International Monetary Fund (IMF) in December. The deal included a $1.4 billion loan meant to aid the country’s reform agenda and adjust its payment balance. 

For 40 months, the IMF’s fund facility would assist El-Salvador with about $3.5 billion. In exchange, the IMF required that certain BTC activities be checked. 

This includes BTC acceptance becoming voluntary for private-sector transactions rather than being mandatory. Regarding the deal, the IMF aims to safeguard financial stability and integrity alongside investors’ protection. Also highlighted is the need to improve regulatory and supervisory transparency. 

In 2021, El Salvador became the first country to formally recognize BTC as a legal tender. It has a reserve of about 6,049 BTC. By 2022, it became the world’s first country to build a BTC reserve, protecting people from fiat and alternative currencies. 

Aside from President Bukele’s crypto drive, President Donald Trump of the US signed a crypto-related executive order, indicating a growing global interest. 

Pro-Crypto Moves by Global Leaders You Should Know

Globally, legislators and governments have intensified consideration for crypto-based treasuries and reserves. State legislators in the US have repeatedly weighed in on a BTC treasury reserve option. 

Certain laws created by world leaders have also set a welcoming atmosphere for crypto investors. For example, last year, the Czech Republic government signed a law exempting BTC holders from capital gains tax. 

Thailand legislators made a decisive move in 2024 towards making crypto accessible to everyone. It considered permitting Bitcoin Exchange-traded funds (EFTs) to be listed on local stock exchanges. 

In Canada, the Mayor of Vancouver, British Columbia, approved a motion to accept BTC to pay taxes and fees.

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